Typically, IMI is compensated in the form of commissions and overrides paid on a project's real estate sales that take place while IMI is managing the sales & marketing program. The basic provisions of the IMI compensation arrangement are outlined below. Sales commissions are negotiated on a project-to-project basis. In developing a sales commission plan, IMI considers factors that include the developer's sales goals, inventory availability, market viability, size of the required sales management organization, and the pricing model. The compensation plan also includes a performance-based bonus based on IMI achieving mutually agreed upon sales goals.

IMI receives a monthly advance against future commissions from the developer. Advance payments begin at contract signing and continue for a pre-determined period of time that usually ends once the sales program has a steady flow of contracts and closings. On most projects, the developer will also have responsibility for paying draws against future commissions for most of the project's sales agents. These advances will also stop once a steady flow of contracts and closings occurs.

All sales commissions and overrides are paid directly to IMI (through its broker affiliate) by the escrow closing attorney or title company as a part of the closing settlement.

On homesites and finished product sales, IMI receives 100% of its commission at closing. On pre-sale shelter product sales, IMI receives 67% of its commission at firm contract with full deposit, and the balance at closing. IMI is responsible for paying all of its sales agents and sales managers, as well as any cooperating third party brokers, out of its commissions.

In addition to sales commissions and performance-based overrides, the Developer is also responsible for paying all other project-related sales and marketing expenses, including but not limited to sales administration, legal, and IMI out-of-pocket expenses. These expenses are all set forth in a detailed budget which is prepared by IMI and approved in advance by the Developer.

References

Bobby Ginn Ginn Development Company 1 Hammock Beach Parkway Palm Coast, FL 32137 Phone: (386) 246-5777		Jim Bartlett Managing Partner Highlands Management Group 14646 N. Kierland Blvd., Suite 240 Scottsdale, AZ 85254 Phone: (480) 948-2902		Nick Hackstock Managing Partner Highlands Management Group 14646 N. Kierland Blvd., Suite 240 Scottsdale, AZ 85254 Phone: (480) 948-2902
Tim Welbes Vice President of Residential Real Estate The Woodlands Operating Company 2201 Timberloch Place The Woodlands, TX 77380 Phone: (281) 719-6288		Tim Kenny Nicklaus Design Golden Bear International Inc. 11780 U.S. Hwy 1 North Palm Beach, FL 33408 Phone: (561) 626-3900		Scott Beville Senior Vice President of Sales and Marketing The Cliffs Communities 301 Beaverdam Road Travelers Rest, SC 29690 Phone: (864) 836-2227